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V2854-21 17 November 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Right to tax deduction for main residence investment maintained when novating, subrogating or replacing a loan, with caveats

The applicant asks whether cancelling an existing mortgage to enter into a new one (potentially with an increased principal) results in the loss of the tax deduction for investment in the main residence. The DGT rules that modifying financing conditions does not exhaust the right to the deduction, provided the new loan is used to repay the previous one.

The question raised

Whether, after carrying out the restructuring operation through cancellation and new contracting, due to the resulting form of indebtedness, the taxpayer will have the same right to deduct the amounts that are either amortized or satisfied. If not, whether such deduction could be achieved by performing a subrogation. And whether the deduction would also be maintained in the event of an increase in the principal.

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